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- Propel Funeral Partners (PFP) successfully completes its institutional placement and raises $50.2 million
- The funds were raised through the issue of approximately 12.25 million new fully paid ordinary shares to new and existing institutional shareholders at $4.10
- Propel is also offering eligible shareholders the opportunity to participate in a share purchase plan (SPP) to raise up to $10 million
- Money from both the placement and SPP will be used to pay down debt and pursue further growth initiatives including acquisitions
- Propel ends the day 5.66 per cent in the red with shares trading at $4.17
Propel Funeral Partners (PFP) has successfully completed its institutional placement and raised $50.2 million.
The funds were raised through the issue of approximately 12.25 million new fully paid ordinary shares to new and existing institutional shareholders at $4.10.
This price represents a 7.2 per cent discount to Propel’s last closing price of $4.42 on October 18 and a 5.4 per cent discount to the five-day volume-weighted average price.
Shares are expected to settle on October 22 and be issued, allocated and begin trading on the ASX on October 25.
Propel is also offering eligible shareholders the opportunity to participate in a share purchase plan (SPP) to raise up to $10 million.
Eligible shareholders will be able to subscribe for shares worth up to $30,000 without incurring any brokerage fees.
Propel has the right to increase the size of the SPP or scale back applications at its sole discretion.
Each director of the company and the Chief Financial Officer have confirmed their intention to participate in the plan.
The plan is expected to open on October 27 and close on November 17 with shares to be issued and begin trading on the ASX on November 24.
Propel will use the money from both the placement and SPP to pay down debt and pursue further growth initiatives including acquisitions.
Managing Director Albin Kurti said the placement and share purchase plan came at the right time for the company’s next stage of growth.
“We believe this is the right time to further strengthen our balance sheet, as the company seeks to continue to execute on its acquisition led growth strategy in what is a highly fragmented industry,” he said.
Propel has ended the day 5.66 per cent in the red with shares trading at $4.17 in a $452.1 million market cap.
